Press Conference by Minister Muto (Excerpt)

*Note: This is a provisional translation for reference purposes only.

9:55 to 10:08
Friday, November 29, 2024
Press Conference Room, METI Main Building

Opening Remarks

Approval of plans for securing the supply of semiconductors and advanced electronic components under the Economic Security Promotion Act

To begin, I would like to mention three points.
First, today, we approved eight plans for securing the supply of semiconductors and advanced electronic components under the Economic Security Promotion Act. The total subsidy amount is around 100 billion yen at a maximum.
The plans approved at this time include one regarding silicon carbide (SiC) power semiconductors, the market for which is expected to expand in line with the increasing adoption of electric vehicles. This aims to secure a supply capacity similar to that of European and U.S. companies ranked high in terms of market share by consolidating production bases.
We also approved plans regarding the production capacity expansion of semiconductor materials and advanced electronic components essential for communications equipment.
Through this support measure, we will increase supply chain resilience.
For detailed information, please make inquiries with the administrative staff.

Announcement of projects adopted with respect to the Space Strategy Fund

Let us move on to the second point. This afternoon, the Japan Aerospace Exploration Agency (JAXA) will announce projects related to satellite constellations that have been adopted with respect to the Space Strategy Fund. The Ministry of Economy, Trade and Industry implements budgetary measures and sets the themes for the projects. By deploying many satellites, the satellite constellations will enable high-frequency observations and real-time communications that cannot be realized through the use of a single satellite. They could form critical infrastructure that supports not only the people’s lives and industry but also contributes to security.
Through this budget adoption, we will work with relevant government organizations and JAXA to support ambitious private-sector business operators’ endeavors toward commercialization.
For detailed information, please make inquiries with JAXA.

Publication of the results of the follow-up survey regarding the Price Negotiation Promotion Month

Now I will move on to the third point. Regarding price pass-through by small and medium-sized enterprises, today, we are publishing the results of the survey concerning the Price Negotiation Promotion Month initiative held in the most recent month of September. I will mention the key points.
The percentage of responding companies who answered “Price negotiation was initiated by the purchasing side” increased two points from the previous survey to around 30% of the total, indicating that a mood favorable for negotiation is being fostered. The price pass-through rate increased three points from the previous survey to 49.7%.
On the other hand, around 20% of the companies still answered “No price pass-through,” showing a clear polarization. Moreover, at a deeper stage of transaction in a supply chain, the price pass-through rate tends to be lower.
Meanwhile, with respect to public demand, or demand related to national and local government activities, some companies replied that negotiation and price pass-through were refused because of their budgetary constraints.
In light of the survey results, we will continue to support price pass-through in order to secure funds for wage hikes at small and medium-sized enterprises and to increase the resilience of the entire supply chain.
As for detailed information, the administrative staff will give you a briefing later.
I will end my remarks here.